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Cost of Employee Turnover Calculator

Replacing an employee involves departure expenses, vacancy costs, hiring, onboarding, and the time needed to reach full productivity. Gallup has estimated replacement costs at one-half to two times annual salary. Enter your figures for each stage to estimate the cost for this role.

About this calculator

Your results update in your browser as you enter your figures.

Method note: What employee turnover actually costs Note reviewed:

What to expect Start with the role's annual salary, number of departures, and exit expenses. Then add hiring, vacancy, and ramp-up figures. The calculation takes about three minutes.

The role

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Separation

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Include HR and manager time, final payroll processing, and benefits administration related to the departure.
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Replacement cost details

During the vacancy

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The example uses 30 vacant working days, about six calendar weeks, and a daily vacancy cost equal to 50% of daily pay. SHRM reported a 2025 median time to fill of roughly one and a half months. Use actual coverage expenses and lost output for this role to adjust the percentage.

Recruiting and hiring

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Enter each expense per hire. For staff time, multiply hours by hourly cost. The example uses $5,475 in recruiting costs, matching SHRM's reported 2025 nonexecutive average. SHRM reported a median of $1,200. Both figures appear in the cost per hire note. Use your actual recruiting costs for this role.

Onboarding and ramp-up

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The example uses six months to reach full productivity, informed by an Oxford Economics study of five UK sectors that found roughly 28 weeks. The onboarding note explains the research. Enter the typical ramp-up period for this role. The 50% productivity assumption represents output rising evenly from zero to full productivity.

Cost per departure

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0% of annual salary
Daily base pay
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Total cost of all departures
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Estimated cost to replace one employee in this role: $0.

Where turnover costs come from

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How the calculation works

What employee turnover costs

Gallup has estimated replacement costs at one-half to twice annual salary. In 2019, Gallup estimated the annual cost of voluntary turnover to US businesses at $1 trillion. The calculation separates departure expenses, vacancy costs, recruiting, onboarding, and lost productivity. It shows direct spending alongside the estimated cost of reduced output and overtime.

The example includes $5,475 in recruiting costs, matching SHRM's 2025 nonexecutive average. SHRM also reported a $1,200 median. Both figures appear in the cost per hire note.

The six-month ramp draws on a 2014 Oxford Economics study of five UK sectors that reported about 28 weeks to full productivity. The onboarding note explains the research.

The 50% vacancy assumption estimates coverage and lost output costs. The 50% ramp productivity assumption represents productivity increasing steadily from zero to full output. Adjust both assumptions to reflect the role.

Sources reviewed 9 October 2026. Gallup, This Fixable Problem Costs U.S. Businesses $1 Trillion, 2019, gallup.com. SHRM, SHRM Releases 2025 Benchmarking Reports, press release, 15 October 2025, shrm.org. SHRM, 2025 Recruiting Executives Benchmarking, data brief, 2025, shrm.org (PDF). Oxford Economics, The Cost of Brain Drain, 2014, as reported by HR Review on 25 February 2014, hrreview.co.uk. U.S. Department of Labor, Wage and Hour Division, Fact Sheet #23: Overtime Pay Requirements of the FLSA, dol.gov.

See the cost categories

Separation

Departure expenses include HR and manager time, exit processing, accrued paid time off payouts, and severance.

Vacancy

The example uses a 50% vacancy assumption to estimate overtime expenses, temporary coverage costs, and lost output. It assigns a cost equal to 50% of daily pay for each vacant working day.

Recruiting

Recruiting costs include advertising, agency fees, interview time, background checks, and assessments.

Onboarding and training

Onboarding costs include training, materials, equipment, and setup.

Productivity during ramp-up

The calculator estimates lost productivity using salary, months to full output, and average productivity during that period.

Compare replacement costs across roles

See which roles cost the most to replace

Use the Cost of Turnover Calculator workbook to compare replacement costs across roles. Copy the worksheet for each position and review the visible formulas. The Benchmark and Summary tabs help you prepare your findings for leadership.

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Compare this estimate with your records to help plan your next step.

Next steps

Compare the roles that cost the most to replace

Review replacement costs across roles to see where retention efforts could save the most.

01 · Calculate

Estimate one role's replacement cost

Use the role's salary, hiring expenses, and typical time to full productivity.

02 · Save and compare

Keep your replacement cost estimate

Email your results, then compare other roles in the Excel workbook.

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03 · Understand retention risks · $69

Retention and Stay Interview Action Kit

Use structured stay interviews to learn what matters to employees, identify retention risks, and decide where to act.

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